A good of which less is demanded at any given price as income rises, over some range of incomes. An inferior good thus has a negative income elasticity of demand, over this income range. A good is most likely to be inferior if it has a close substitute of higher quality. It should be noted that a good cannot be inferior at all levels of income.

See also:

Engel curve

• base
• baseline
• base period
• base rate
• base-weighted index
• base year
• basic rate
• basis point
• batch production
• Bayesian statistics
• BBB
• BCCI
• BEA
• bear
• bearer bond
• bearer security
• bear market
• before-tax income
• beggar-my-neighbour policy
• behavioural theories of the firm
• bell curve
• below-the-line
• benefit
• benefit-cost analysis
• benefit principle